Dubai, United Arab Emirates - Tuesday, 07. October 2025
A new
study by the Moscow Innovation Cluster, unveiled at the Moscow Startup
Summit organized by the Government of Moscow and Sber, challenges
widespread perceptions about the startup environment. Experts compared
international data on failed companies with their own analysis of
promising Russian ventures. The findings dispel key myths and offer a
more accurate picture of startup survival rates in Russia and worldwide.
What’s happening?
Globally,
there is a shift in how risks for new businesses are assessed. The
“Valley of Death” is no longer seen only as a threat, but as an
inevitable and in many ways useful stage in strengthening a company. The
Cluster’s research shows that success depends less on the size of
initial funding and more on the team’s ability to listen to the market,
adapt quickly, and make effective use of external support. Despite
existing challenges, Russia is developing a resilient and diversified
ecosystem where three-year survival rates are comparable to those in
Europe and the U.S.
The myth of 90%.
The claim that 90% of
Russian startups collapse in their first year is outdated. Studies from
the 2010s showed such numbers, but they mainly tracked internet
startups and often counted companies that simply stopped growing, not
just those that shut down. Current global data suggests that 40–60% of
companies close within their first few years with variations by country,
industry, and support conditions. The main reason is not funding
shortages, but lack of demand and poor market assessment. Other factors
include:
No demand
Insufficient financing
Weak team
Losing out to competitors
Poor timing of product launch
Ignoring customer feedback
Unclear product design
Ineffective marketing
Pricing errors or high costs
Who survives?
About
80% of Russian startups face the early-stage crisis. The critical point
comes during first sales (41% of cases) or product testing (34%).
Survival depends on a comprehensive approach, not just cutting costs.
According to the survey, 88% of startups sought external support to get
through difficulties. Half did so at the first sign of trouble, 33% only
after realizing they couldn’t cope alone, and 11% needed strong advice
to take that step.
The key supporters for Russian startups include:
Major clients and partners (who ease obligations and help improve products)
Development institutions (as a central source of structured support)
Incubators and accelerators (mentoring, networking, promotion, product testing)
Business angels (financial backing)
Yet
the research stresses: external help works only when combined with
internal strength - a solid team, good management, and fast
decision-making.
The Russian specifics.
In Russia, about
61% of tech companies remain on the market after three years — higher
than the global average. Startups founded during or after the pandemic
proved even more resilient, as they were built in conditions of
uncertainty and focused on promising niches from the start.
Bottom line.
The
Moscow Innovation Cluster’s study paints a more complex but also more
optimistic picture than the usual narrative. The “Valley of Death” is
not a death sentence but a tough training ground. Companies that pass
through it emerge stronger and more sustainable. The key to success lies
in three elements: understanding customer needs, building a strong
team, and making full use of the national ecosystem. Russian startups
are showing that this formula works.
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https://www.aetoswire.com/en/news/0710202549744
Contacts
Namita Thakkar
namita@matrixdubai.com
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